Latvia received a double-dose of good news last week in that the country reported a strong gain in third-quarter output and had its credit rating raised by one notch at S&P.
“To their huge credit they buckled under, took the pain and austerity and pushed forward with structural reforms, and are now growing” an S&P spokesperson was quoted as saying.
The strong economic performance out of Latvia, a Baltic state neighboring Russia, was on the back of a deficit reduction plan estimated at 1.6% in 2012.
While the credit default market’s reaction was relatively muted and only moved default swaps down 2 bps, the upgrade in the Latvia’s credit rating will almost certainly help lower borrowing costs for the country’s government issued fixed income and sovereign debt.
Both the Excel EM High Income Fund and the Excel Emerging Europe Fund invest in this region of the world. And with exposures to both fixed income and equity markets, and boasting “on the ground” professional managers, Excel Funds provides the Canadian investor with opportunities to profit in uniquely compelling markets that for the most part remain untapped outside of only the institutional investor.
Written by Jack S.
Halas, Sedder. Latvia Gets a Double Dose of Good News – Emerging Europe Real Time, Wall Street Journal.
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